What are the remedies available to creditors in a bankruptcy proceeding?

In Montana, creditors have certain rights and remedies that are available to them in a bankruptcy proceeding. Creditors have the right to receive notice of the bankruptcy petition and the bankruptcy court proceedings. Creditors have the right to file a proof of claim with the court. This proof of claim states the amount that the creditor is owed and must be filed by a certain deadline. Creditors also have the right to object to any discharge of debt, a process that relieves the debtor of their financial obligations. Creditors can also file a motion to lift the automatic stay or impose mandatory injunctions on the debtor. The automatic stay prevents a creditor from initiating or continuing collection actions against the debtor. In addition, creditors may also file a motion to use the “adequate protection” provision of the law. Through this, creditors can secure adequate protection to ensure that they will receive payments to satisfy a portion of their debt. This protection usually comes in the form of payments from the debtor or property that can be used to offset the debt. Finally, creditors may take part in the “avoidance powers” of the bankruptcy court. These powers are used by the court to undo certain transactions that were made shortly before the bankruptcy filing. This process is used to return property or money to creditors that the debtor may have fraudulently obtained.

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What are the remedies available to creditors in a bankruptcy proceeding?

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